Li Auto is advancing a comprehensive retail network optimization plan that involves the planned closure of about 100 underperforming retail stores in the first half of 2026, according to multiple Chinese media reports. The closures are concentrated among low‑efficiency outlets, including locations in the shopping center cores of first‑ and second‑tier Chinese cities, as the company seeks to adjust its channel structure amid sales pressure, as reported by Sina.
As of December 31, 2025, Li Auto operated 548 directly owned retail centers in 159 cities on a financial reporting basis, while its official website listed a nationwide total of 904 retail centers when including light‑asset partner stores under its “Hundred Cities Star Plan.” The difference in figures reflects the inclusion of co‑built, light‑asset locations in the broader total count.
The planned closures form part of a broader channel strategy that Li Auto has been implementing to enhance operational efficiency. The strategy includes exiting high‑rent shopping center stores with rising acquisition costs and prioritizing the expansion of AutoPark automotive park stores. AutoPark locations generally offer larger spaces and combined functions for sales, delivery, and maintenance at lower rental costs than traditional shopping center outlets.
Li Auto is also advancing its “Hundred Cities Star Plan” to strengthen its presence in third‑ and fourth‑tier cities through light‑asset partnerships. Under this approach, the company collaborates with local partners to share renovation and equipment costs, thereby lowering investment risk and enabling broader coverage in lower‑tier markets as an alternative to heavy direct investment.
The company has publicly addressed online rumours about large‑scale store closures and layoffs, stating that circulating reports of mass shutdowns are inaccurate. The official clarification emphasised that only a limited number of low‑efficiency shopping center stores are expected to close during the year and that this does not constitute a widespread shutdown.
Li Auto’s 2025 delivery results reflect market challenges that underpin its channel adjustments. The brand delivered 44,246 vehicles in December 2025, contributing to fourth‑quarter deliveries of 109,194 units and cumulative deliveries of 1,540,215 vehicles by year‑end. The full year 2025 deliveries were approximately 406,000 units, a year‑on‑year decline that fell short of the company’s initial sales targets.
Li Auto’s retail network restructuring in early 2026 prioritises efficiency and lower operational costs, while the company contends with fluctuating delivery performance and competitive pressures in China’s new-energy vehicle market.
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